+1-415-315-9853

info@mywordsolution.com

## Economics

 Basic Economics Macroeconomics Microeconomics Business Economics Econometrics International Economics Managerial Economics Game Theory Public Economics

A future recession greatly affects the daily market demand for Maine lobsters, which can be described as QD = 3000 + 250I - 250P (I is the average American income in \$1000s). Thanks to the recession, that average income falls from \$32,000 to \$24,000.
All lobster fisherman are identical and face the same relationship between their total daily costs and daily output (q): TC = ½*q2+4q + 200. You should assume that market output is the sum of all firm output (Q = N*q, where N is the number of lobster fishermen). Use this information to answer the following problems.

a) Graph the pre-recession and post-recession demands for lobster. In the short-run, what happens to the price of lobster? (A simple graphical analysis is appropriate, you should not attempt to give a numerical answer)
b) What is the efficient scale (i.e., at what q are average total costs minimized) for lobster fishermen?
c) Before the recession, there were 250 lobster fishermen. Was the industry in long-run equilibrium? Find that scenario's market price, total output, each firm's output, and each firm's profits.
d) After the recession, the 250 lobster fishermen continue to go out and fish.
i) What is each fisherman's profit-maximizing output now?
ii) Find the market price and the total output.
iii) How large of a loss are the fishermen incurring?
iv) In the short-run, will these fishermen continue to operate or shut down (i.e., leave their boats idle at the dock)?
e) Find the long-run equilibrium number of fishermen in the post- recession market for lobsters. How many fishermen had to exit?

Microeconomics, Economics

• Category:- Microeconomics
• Reference No.:- M940782

Have any Question?

## Related Questions in Microeconomics

### Table 10-3debt ratings median financial ratios by

TABLE 10-3 Debt Ratings: Median Financial. Ratios by Category   Median ratios for overall category in January 2011 (excludes financial firms) Earnings before S&P interest and   Cash flow from   debt taxes to net Pretax i ...

### Accounting for decision making- learning objectives- to

Accounting for Decision Making- Learning Objectives- To understand the types of information included in a business case and how the content of the business case will be shaped by the information needs of interested stake ...

### Economics problem set-question 1 sometimes goods are

Economics Problem Set- QUESTION 1: Sometimes goods are rationed, so people cannot buy as much as they want at the announced price. A good example is Super bowl tickets, which are sold at below market price. Suppose that ...

### Assignment external financinggenesis energys newly

Assignment: External Financing Genesis Energy's newly established operations management team decided to seek outside assistance in developing a long-term operating plan that also addresses the financial issues identified ...

### Problem 1 -an economic forecasting organization has

PROBLEM 1 - An economic forecasting organization has developed a model they feel will help them better predict the market conditions than just overall sentiment.  Their proprietary model yields either Positive or Negativ ...

### Format individual report limited to 1500 words - use them

Format: individual report, limited to 1500 words - use them wisely! The task is to produce a concise yet critical report, provide recommendations and recognise limitations of what you are recommending. This is the questi ...

### Assignment swot analysiswrite a white paper in which you

Assignment SWOT Analysis Write a white paper, in which you describe how a SWOT analysis can help companies maximize their marketing strategies in a global context. Support your views with appropriate evidence. Your answe ...

### Assignmentthere are many terms used to describe the

Assignment There are many terms used to describe the importance of people to an organization's success. Some of those terms are human resources, human capital, intellectual assets, and talent management. This implies tha ...

### Case analysis instructionsnoteyou will need to get approval

Case Analysis Instructions NOTE: YOU WILL NEED TO GET APPROVAL FOR THE CASE YOU WISH TO ANALYZE. YOU ARE TO UPLOAD INFORMATION ON YOUR PROPOSED CASE TO THE "SUBMISSIONS" FOLDER ON THE COURSE HOMEPAGE BY SUNDAY, SEPTEMBER ...

### Paperpart i submissionit should be a complete polished

Paper Part I Submission: It should be a complete, polished artifact containing all of the critical elements of Final Project Part I, including Sections I and IV, which were not covered in the milestones. The final submis ...

• 13,132 Experts

## Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

### A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

### What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

### Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

### Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

### Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate